The Slab Design Problem in the Steel Industry

Dawande, Milind; Kalagnanam, Jayant; Lee, Ho Soo; Reddy, Chandra; Siegel, Stuart; Trumbo, Mark

doi:10.1007/0-387-33117-4_10

Cited by 2 publications

(3 citation statements)

References 18 publications

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“…Supply chain simulation using a system‐dynamics approach was also developed by Dawande et al (2004), who used heuristic optimisation to satisfy an order book. The methodology involved the minimisation of slab inventory and scrap, such that output was in accordance with a targeted order weight.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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Steel supply chain management by simulation modelling

Sandhu

Helo

Kristianto

2013

Benchmarking: An International Journal

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The aim of this paper is to propose a simulation study of the "steel supply chain" to demonstrate the effect of inventory management and demand variety on the bullwhip effect mitigation. Design/methodology/approach -The relevant literature is reviewed, and then the simulation model proposed.Findings -This study identifies reasons for sharing information under varying levels of demand and some variants, and demonstrates the benefits of mitigating the bullwhip effect by applying a design of experiment. It is shown that the information sharing is able to mitigate the bullwhip effect in the steel supply chain by extending the order interval and minimising the order batch size. Research limitations/implications -This study explores the factors associated with the bullwhip effect. This research is focused on built-to-order simulation, so the results are only oriented on the basis of orders; hence a simultaneous order-and forecast-based steel supply chain should be carried out in the future. Practical implications -This framework is expected to provide a convenient way to measure the optimum inventory level against a limited level of demand uncertainty, and thus enterprises can promote the supply chain coordination. Originality/value -An innovative simulation model of the "steel supply chain" is proposed, which includes information sharing in the simulation model. Furthermore, dynamic scheduling is shown by applying a continuous ordering and order prioritization rule to replace traditional scheduling methods.

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Section: Theoretical Backgroundmentioning

confidence: 99%

“…Some guidelines for supply chain simulation have been suggested for application in the steel industry (Naylor et al , 2007; Dawande et al , 2004). However, the authors focus on production scheduling to minimise the on‐hand inventory.…”

Section: Introductionmentioning

confidence: 99%

Steel supply chain management by simulation modelling

Sandhu

Helo

Kristianto

2013

Benchmarking: An International Journal

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“…Examples of parallel batching problems in the steel production include order batching in the melting process, assignment of orders to slabs in the end of the steelmaking stage, slab batching in the reheating process, and coil batching in the batch annealing process. Representative recent papers on parallel batching include Kalagnanam et al (2000), Naphaoe et al (2001), Balakrishnan and Geunes (2003), Dawande et al (2004), and Tang et al (2011). Since our paper is on a serial batching problem, we do not review these papers in detail.…”

Section: Literature Reviewmentioning

confidence: 99%

Integrated Charge Batching and Casting Width Selection at Baosteel

Tang

Wang

Chen

2014

Operations Research

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We study an integrated charge batching and casting width selection problem arising in the continuous casting operation of the steelmaking process at Shanghai, China based Baosteel. This decision-making problem is not unique to Baosteel; it exists in every large iron and steel company in the world. We collaborated with Baosteel on this problem from 2006 to 2008 by developing and implementing a decision support system (DSS) that replaced their manual planning method. The DSS is still in active use at Baosteel. This paper describes the solution algorithms we developed and imbedded in the DSS. For the general problem that is strongly NP-hard, a column generation-based branch-and-price (B&P) solution approach is developed to obtain optimal solutions. By exploiting the problem structure, efficient dynamic programming algorithms are designed to solve the subproblems involved in the column generation procedure. Branching strategies are designed in a way that ensures that after every stage of branching the structure of the subproblems is preserved such that they can still be solved efficiently. We also consider a frequently occurring case of the problem where each steel grade is incompatible with any other grade. For this special case, a two-level polynomial-time algorithm is developed to obtain optimal solutions. Computational tests on a set of real production data as well as on a more diverse set of randomly generated problem instances show that our algorithms outperform the manual planning method that Baosteel used to use by a significant margin both in terms of tundish utilization for almost every case, and in terms of total cost for most cases. Consequently, by replacing their manual method with our DSS, the estimated benefits to Baosteel include an annual cost saving of about US $1.6 million and an annual revenue increase of about US $3.25 million.

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The Slab Design Problem in the Steel Industry

Cited by 2 publications

References 18 publications

Steel supply chain management by simulation modelling

Steel supply chain management by simulation modelling

Integrated Charge Batching and Casting Width Selection at Baosteel

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